CARRIER GLOBAL CORP (CARR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CARR - US14448C1045 - Common Stock
57.07 USD
-0.3 (-0.52%)
57.07 USD
0 (0%)
Taking everything into account, CARR scores 4 out of 10 in our fundamental rating. CARR was compared to 42 industry peers in the Building Products industry. CARR has a medium profitability rating, but doesn't score so well on its financial health evaluation. CARR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year CARR was profitable.
- In the past year CARR had a positive cash flow from operations.
- Each year in the past 5 years CARR has been profitable.
- In the past 5 years CARR always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 10.46%, CARR is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
- CARR has a better Return On Equity (27.45%) than 83.33% of its industry peers.
- CARR has a Return On Invested Capital of 5.09%. This is in the lower half of the industry: CARR underperforms 73.81% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CARR is below the industry average of 12.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.46% | ||
| ROE | 27.45% | ||
| ROIC | 5.09% |
ROA(3y)10.88%
ROA(5y)9.38%
ROE(3y)33.63%
ROE(5y)31.44%
ROIC(3y)8.06%
ROIC(5y)7.66%
1.3 Margins
- The Profit Margin of CARR (18.05%) is better than 92.86% of its industry peers.
- CARR's Profit Margin has improved in the last couple of years.
- CARR has a Operating Margin of 11.00%. This is comparable to the rest of the industry: CARR outperforms 45.24% of its industry peers.
- In the last couple of years the Operating Margin of CARR has declined.
- CARR has a Gross Margin of 27.36%. This is comparable to the rest of the industry: CARR outperforms 42.86% of its industry peers.
- In the last couple of years the Gross Margin of CARR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11% | ||
| PM (TTM) | 18.05% | ||
| GM | 27.36% |
OM growth 3Y-5.06%
OM growth 5Y-4.9%
PM growth 3Y45.61%
PM growth 5Y16.99%
GM growth 3Y-2.78%
GM growth 5Y-1.79%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CARR is destroying value.
- Compared to 1 year ago, CARR has more shares outstanding
- CARR has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for CARR has been reduced compared to a year ago.
2.2 Solvency
- CARR has an Altman-Z score of 2.51. This is not the best score and indicates that CARR is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.51, CARR is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
- CARR has a debt to FCF ratio of 8.45. This is a slightly negative value and a sign of low solvency as CARR would need 8.45 years to pay back of all of its debts.
- CARR has a Debt to FCF ratio of 8.45. This is in the lower half of the industry: CARR underperforms 64.29% of its industry peers.
- A Debt/Equity ratio of 0.78 indicates that CARR is somewhat dependend on debt financing.
- CARR has a worse Debt to Equity ratio (0.78) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 8.45 | ||
| Altman-Z | 2.51 |
ROIC/WACC0.6
WACC8.49%
2.3 Liquidity
- CARR has a Current Ratio of 1.14. This is a normal value and indicates that CARR is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.14, CARR is not doing good in the industry: 90.48% of the companies in the same industry are doing better.
- CARR has a Quick Ratio of 1.14. This is a bad value and indicates that CARR is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of CARR (0.75) is worse than 88.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
- The earnings per share for CARR have decreased by -0.36% in the last year.
- The Earnings Per Share has been growing by 20.27% on average over the past years. This is a very strong growth
- Looking at the last year, CARR shows a very negative growth in Revenue. The Revenue has decreased by -22.93% in the last year.
- CARR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.86% yearly.
EPS 1Y (TTM)-0.36%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%-12.99%
Revenue 1Y (TTM)-22.93%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-6.77%
3.2 Future
- The Earnings Per Share is expected to grow by 11.59% on average over the next years. This is quite good.
- Based on estimates for the next years, CARR will show a small growth in Revenue. The Revenue will grow by 5.00% on average per year.
EPS Next Y-4.02%
EPS Next 2Y3.65%
EPS Next 3Y6.52%
EPS Next 5Y11.59%
Revenue Next Year-4.07%
Revenue Next 2Y-0.53%
Revenue Next 3Y1.33%
Revenue Next 5Y5%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 20.53, the valuation of CARR can be described as rather expensive.
- The rest of the industry has a similar Price/Earnings ratio as CARR.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, CARR is valued a bit cheaper.
- CARR is valuated rather expensively with a Price/Forward Earnings ratio of 18.97.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CARR is on the same level as its industry peers.
- CARR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.53 | ||
| Fwd PE | 18.97 |
4.2 Price Multiples
- CARR's Enterprise Value to EBITDA is on the same level as the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CARR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.06 | ||
| EV/EBITDA | 15.94 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.01
EPS Next 2Y3.65%
EPS Next 3Y6.52%
5. Dividend
5.1 Amount
- CARR has a Yearly Dividend Yield of 1.67%.
- Compared to an average industry Dividend Yield of 0.66, CARR pays a better dividend. On top of this CARR pays more dividend than 88.10% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, CARR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
5.2 History
- CARR has been paying a dividend for over 5 years, so it has already some track record.
- CARR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- CARR pays out 18.56% of its income as dividend. This is a sustainable payout ratio.
DP18.56%
EPS Next 2Y3.65%
EPS Next 3Y6.52%
CARRIER GLOBAL CORP / CARR FAQ
Can you provide the ChartMill fundamental rating for CARRIER GLOBAL CORP?
ChartMill assigns a fundamental rating of 4 / 10 to CARR.
Can you provide the valuation status for CARRIER GLOBAL CORP?
ChartMill assigns a valuation rating of 2 / 10 to CARRIER GLOBAL CORP (CARR). This can be considered as Overvalued.
How profitable is CARRIER GLOBAL CORP (CARR) stock?
CARRIER GLOBAL CORP (CARR) has a profitability rating of 5 / 10.
What is the financial health of CARRIER GLOBAL CORP (CARR) stock?
The financial health rating of CARRIER GLOBAL CORP (CARR) is 2 / 10.
How sustainable is the dividend of CARRIER GLOBAL CORP (CARR) stock?
The dividend rating of CARRIER GLOBAL CORP (CARR) is 5 / 10 and the dividend payout ratio is 18.56%.